Regulatory Alerts2021-03-08
ESMA Opinion on position limits for EEX French Power Base contracts
The European Securities and Markets Authority approved revised position limits for French Power Base Futures and Options set by BaFin following a significant decrease in open interest. The new limits establish a spot month cap of 20,351,999 MWh and an other months cap of 15,805,238 MWh, both calculated in compliance with RTS 21 methodology. While ESMA confirmed the limits prevent market abuse and support orderly pricing, it recommended that BaFin monitor the spot month limit relative to actual open interest and revise it if necessary.
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